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Monday, 24 June 24
PLN'S FINANCIAL SUSTAINABILITY RESTS ON ACCELERATED COAL RETIREMENT AND RENEWABLES DEPLOYMENT - MUTYA YUSTIKA
 On 28 May 2024, Indonesia’s national electricity utility, PT Perusahaan Listrik Negara (PLN), released its financial report for 2023. Although the report showed a net profit increase of IDR22 trillion (tn), a 53% rise from 2022, the Institute for Energy Economics and Financial Analysis (IEEFA) calculates that PLN would have recorded a substantial loss of IDR120tn without subsidies and compensations from the Government of Indonesia (GOI).
At first glance, PLN’s cash reserves increased by 9% for the fiscal year 2023, and its electricity sales rose around 7%. This increase in sales contributed the most to PLN’s income growth, amounting to IDR22.2tn. However, despite the improved performance and positive figures, there are underlying red flags.
Despite increased cash reserves, PLN’s liquidity ratio (0.92), quick ratio (0.79), and cash ratio (0.39) were all below 1.00. These figures indicate that the utility is struggling to meet its urgent payment obligations with cash or current assets.
PLN’s financial performance heavily depends on GOI’s subsidies and compensations, which have risen by 16.4% from IDR123tn in 2022 to IDR143tn in 2023. However, these incremental increases could halt in 2025. Discussions at the Ministry of Finance are underway to reduce PLN’s subsidies and compensations under the new administration's programs and policies.
An imminent solution for PLN's financial independence is required. PLN's fiscal potential can be unlocked with minimal GOI assistance by improving efficiency, particularly by reducing operating costs through the adoption of renewables.
Reducing cost and volatility via renewables
The Basic Cost of Providing Electricity (BPP) is arguably the main factor determining electricity costs, which are then translated into tariffs paid by customers. Any increase in BPP adds to the GOI’s financial burden.
Since 2020, coal and gas purchase costs have increased significantly. In 2023, purchased electricity from coal and gas contributed to a 14% increase in operational expenses and accounted for 63% of total operating costs. On average, PLN spent around US$4-5 cents per kilowatt hour (¢/kWh) for coal purchases, almost 40% higher than in 2020.
Additionally, PLN’s exposure to US$-denominated coal prices requires reconsideration. Despite the GOI's coal price cap, PLN has struggled with coal price fluctuations due to exchange rate changes. While purchases are denominated in US$, PLN’s tariff collections are in Indonesian rupiahs.
Apart from the base fuel purchasing costs, PLN also had to factor in shipping and plant maintenance costs. As coal-fired power plants age, they lose efficiency and require more coal to produce each kilowatt hour (kWh) of electricity.
Considering the difficulty in reducing purchased electricity costs and renegotiating power purchase agreements with independent power producers, PLN should accelerate the transition from fossil fuel-based energy to avoid price volatility.
Renewable energy sources are low-cost to operate compared to fossil fuel power plants. Furthermore, IEEFA’s recent report has shown that the levelized cost of electricity is around US$4.78¢/kWh for solar and US$4.77¢/kWh for wind. In comparison, coal costs around US$6.5¢/kWh, which is at least US$1.7¢/kWh more.
Solar and wind are now the lowest-cost energy sources globally and are expected to become even cheaper by 2030. Notably, maintaining coal-fired power plants is more expensive than constructing entirely new, rapidly built renewable energy plants.
Consequently, the gradual retirement of coal-fired power plants and a concerted transition to renewable energy sources will be a win-win solution for Indonesia to fulfill its Paris Agreement commitments and financial goals.
Mutya Yustika, IEEFA
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Thursday, 23 July 20
KOREAN GENCOS INVITED BIDS FOR TOTAL 1.36 MILLION TONS OF BITUMINOUS COAL FOR OCTOBER 2020 LOADING
COALspot.com: Korea Midland Power Co., Ltd (KOMIPO) on behalf of EWP, KOSPO, KOSEP and KOWEPO has issued an international tender for total 1,360,00 ...
Wednesday, 22 July 20
CIL'S COAL SUPPLY TO POWER SECTOR DROPS OVER 21% TO 93.5 MT IN APR-JUN QUARTER - PTI
The supply of coal by state-owned Coal India Ltd to the power sector fell 21.7 percent to 93.5 million tonnes (MT) in the first quarter of the ongo ...
Monday, 20 July 20
KOREA MIDLAND POWER INVITED BIDS FOR TOTAL 2.520 MILLION MT OF BITUMINOUS COAL FOR THREE YEARS
COALspot.com: Korea Midland Power Co., Ltd (KOMIPO), has issued an international tender for total 840,000 of Bituminous Coal to be used at Bo ...
Monday, 20 July 20
CHINA'S JUNE COAL OUTPUT FALLS 1.2% YEAR-ON-YEAR OVER ILLEGAL MINING CHECKS - REUTERS
China’s coal output dropped 1.2% in June on the year to 330 million tonnes, official data showed, as major coal mining areas cracked down on ...
Monday, 20 July 20
COAL INDIA LAUNCHES SPECIAL CATEGORY OF E-AUCTION FOR COAL IMPORTERS - BUSINESS STANDARD
Coal India (CIL) on Friday launched a special category of e-auction for importers of coal. This is in line with the government’s declaration ...
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- Grasim Industreis Ltd - India
- Mercator Lines Limited - India
- Meenaskhi Energy Private Limited - India
- Energy Link Ltd, New Zealand
- Videocon Industries ltd - India
- Iligan Light & Power Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Savvy Resources Ltd - HongKong
- Ind-Barath Power Infra Limited - India
- Riau Bara Harum - Indonesia
- Vedanta Resources Plc - India
- Tata Chemicals Ltd - India
- Altura Mining Limited, Indonesia
- Coastal Gujarat Power Limited - India
- Formosa Plastics Group - Taiwan
- The University of Queensland
- Thiess Contractors Indonesia
- Wilmar Investment Holdings
- Indika Energy - Indonesia
- Mercuria Energy - Indonesia
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- Global Green Power PLC Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Ministry of Finance - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bharathi Cement Corporation - India
- SMG Consultants - Indonesia
- Standard Chartered Bank - UAE
- Leighton Contractors Pty Ltd - Australia
- Kepco SPC Power Corporation, Philippines
- Sakthi Sugars Limited - India
- London Commodity Brokers - England
- TeaM Sual Corporation - Philippines
- Carbofer General Trading SA - India
- GVK Power & Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Xindia Steels Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Rio Tinto Coal - Australia
- New Zealand Coal & Carbon
- Petron Corporation, Philippines
- Minerals Council of Australia
- Timah Investasi Mineral - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- Thai Mozambique Logistica
- SN Aboitiz Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Power Finance Corporation Ltd., India
- Price Waterhouse Coopers - Russia
- Agrawal Coal Company - India
- Petrochimia International Co. Ltd.- Taiwan
- Alfred C Toepfer International GmbH - Germany
- Medco Energi Mining Internasional
- Singapore Mercantile Exchange
- Cigading International Bulk Terminal - Indonesia
- Sojitz Corporation - Japan
- Jaiprakash Power Ventures ltd
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- Orica Australia Pty. Ltd.
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Eastern Energy - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhoruka Overseas - Indonesia
- Renaissance Capital - South Africa
- Malabar Cements Ltd - India
- Chamber of Mines of South Africa
- Miang Besar Coal Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Salva Resources Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Sical Logistics Limited - India
- Vizag Seaport Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Commonwealth Bank - Australia
- Dalmia Cement Bharat India
- Essar Steel Hazira Ltd - India
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Oldendorff Carriers - Singapore
- Karaikal Port Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Edison Trading Spa - Italy
- Eastern Coal Council - USA
- Electricity Generating Authority of Thailand
- Coalindo Energy - Indonesia
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Banpu Public Company Limited - Thailand
- Economic Council, Georgia
- Binh Thuan Hamico - Vietnam
- Anglo American - United Kingdom
- Wood Mackenzie - Singapore
- Madhucon Powers Ltd - India
- Orica Mining Services - Indonesia
- Samtan Co., Ltd - South Korea
- International Coal Ventures Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Mines - Canada
- Holcim Trading Pte Ltd - Singapore
- PowerSource Philippines DevCo
- LBH Netherlands Bv - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- Kaltim Prima Coal - Indonesia
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- Globalindo Alam Lestari - Indonesia
- Merrill Lynch Commodities Europe
- Kumho Petrochemical, South Korea
- Mjunction Services Limited - India
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- Gujarat Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- MS Steel International - UAE
- Parliament of New Zealand
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
- Bukit Baiduri Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Straits Asia Resources Limited - Singapore
- Kapuas Tunggal Persada - Indonesia
- Sindya Power Generating Company Private Ltd
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- Posco Energy - South Korea
- Indo Tambangraya Megah - Indonesia
- Energy Development Corp, Philippines
- Electricity Authority, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Central Electricity Authority - India
- Global Coal Blending Company Limited - Australia
- Manunggal Multi Energi - Indonesia
- European Bulk Services B.V. - Netherlands
- Baramulti Group, Indonesia
- Attock Cement Pakistan Limited
- Directorate Of Revenue Intelligence - India
- Siam City Cement PLC, Thailand
- Bayan Resources Tbk. - Indonesia
- Interocean Group of Companies - India
- Aditya Birla Group - India
- Billiton Holdings Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- South Luzon Thermal Energy Corporation
- Marubeni Corporation - India
- Intertek Mineral Services - Indonesia
- Sarangani Energy Corporation, Philippines
- Indogreen Group - Indonesia
- Georgia Ports Authority, United States
- San Jose City I Power Corp, Philippines
- PTC India Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Borneo Indobara - Indonesia
- Metalloyd Limited - United Kingdom
- SMC Global Power, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Star Paper Mills Limited - India
- Indonesian Coal Mining Association
- Rashtriya Ispat Nigam Limited - India
- Global Business Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Larsen & Toubro Limited - India
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- Planning Commission, India
- Cement Manufacturers Association - India
- Coal and Oil Company - UAE
- Bukit Makmur.PT - Indonesia
- Siam City Cement - Thailand
- McConnell Dowell - Australia
- Chettinad Cement Corporation Ltd - India
- Trasteel International SA, Italy
- Jorong Barutama Greston.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- ASAPP Information Group - India
- Africa Commodities Group - South Africa
- VISA Power Limited - India
- Lanco Infratech Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Neyveli Lignite Corporation Ltd, - India
- Pendopo Energi Batubara - Indonesia
- Indian Energy Exchange, India
- Port Waratah Coal Services - Australia
- Australian Coal Association
- CIMB Investment Bank - Malaysia
- Latin American Coal - Colombia
- Heidelberg Cement - Germany
- Toyota Tsusho Corporation, Japan
- White Energy Company Limited
- Independent Power Producers Association of India
- Kohat Cement Company Ltd. - Pakistan
- IHS Mccloskey Coal Group - USA
- Australian Commodity Traders Exchange
- Bhatia International Limited - India
- Bhushan Steel Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- ICICI Bank Limited - India
- Antam Resourcindo - Indonesia
- Semirara Mining Corp, Philippines
- GMR Energy Limited - India
- Tamil Nadu electricity Board
- Central Java Power - Indonesia
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